Sinch Ab · OMXSTO:SINCH
Sinch Ab — Merger or Acquisition (September 2021)
15 slides from Sinch Ab's merger presentation, Sep 22, 2021
Slide 1: Acquisition of MessengerPeople
Acquisition of MessengerPeople 22 September 2021 Oscar Werner, CEO Roshan Saldanha, CFO Thomas Heath, Chief Strategy Officer & Head of Investor Relations
Slide 2: Customer engagement through mobile technology
SEK 11.8bn SEK 131bn SEK 1.2bn 2,292 47 countries with revenue in the Market Cap Adj. EBITDA in the people local presence past 12 months past 12 months Listed on NASDAQ Customer engagement through mobile technology in Stockholm, Sweden Scalable cloud communications 170 billion B2C Serving 8 of the 1
Slide 3: CPaaS throughout the customer journey
CPaaS throughout the customer journey Marketing Operations Customer Service • Generate leads • Use CPaaS • Handle customer • Add revenues functionality in own support • Reduce churn apps and products • Improve customer • Improve efficiency experience • Reduce cost • Reduce contact center cost • Rich
Slide 4: Playbook for profitable growth
Playbook for profitable growth • Empower businesses to leverage rich and conversational messaging Software- • Increase software value-add (CPaaS) in addition to our connectivity offering as-a-Service • Increase stickiness with maintained scalability • Ensure leading direct global connectivity withou
Slide 5: Leveraging M&A to meet strategic objectives
Leveraging M&A to meet strategic objectives • Complementary technology that fits our strategic product roadmap Technology & • Go To Market-ability in relevant products and geographies Go To Market • Increased software value-add with higher gross margin • Future growth drivers • Acquire sticky custom
Slide 6: Recent transactions
Recent transactions SAP Digital Interconnect Rich messaging, Conversational Low code tools Conversational AI messaging Technology & Go To Market Voice, video, Personalized Conversational Voice SME verification video messaging Australia, Americas, Southeast Asia Europe, APAC Scale and profitability U
Slide 7: Deal rationale: MessengerPeople
Deal rationale: MessengerPeople • Founded in 2015 Messenger • Pioneering provider of software-as-a-service for business communications via mobile messaging apps People • 700 active customers, of which 80% in DACH region • Team of around 40 people in Munich, Germany • ”Technology and Go To Market”-ty
Slide 8: Conversational Care for Women's Best
Conversational Care for Women’s Best Women’s Best: • Fast-growing e-commerce business focused on sportswear & sports nutrition for women • Customer care now handled near- exclusively through WhatsApp and iMessage using MessengerPeople Results: • 50% lower average handling time • 70% fewer e-mails in
Slide 9: Customer review of Women's Best on WhatsApp service
“…even better was the customer service after they write to you on WhatsApp… best customer service I have ever had honestly.” TrustPilot user review of Women’s Best, 9 August 2021 9
Slide 10: All chat apps in one inbox
All chat apps in one inbox • Conversations with customers in all different messaging apps are handled in a single business inbox • Time-saving tools increase agent efficiency and reduce waiting times • Quick to demo, quick to deploy • Optimised for mid-sized businesses 10
Slide 11: SaaS-based monetization
SaaS-based monetization • Core target group is mid-sized businesses with high level of customer interactions • Tutorials and guides to drive online lead generation • Simple product & packaging with rapid time-to-value • 85% of use cases relate to Pre-Sales and Customer Service • 92% of revenues from
Slide 12: Track record of profitable growth
Track record of profitable growth Adjusted EBITDA per share, rolling 12 months 7.0 • Focus on Gross profit since pass- through revenues vary between 6.0 MessageMedia geographies 5.0 • Acquisitions adding significantly to SEK billion Inteliquent our scale and profitability 4.0 Other • Investing to in
Slide 13: Financial targets
Financial targets Targets: Adjusted EBITDA per share, rolling 12 months • Adjusted EBITDA per share to grow 20% per year 2.0 • Net debt < 3.5x adjusted EBITDA over time 1.5 1.0 Performance: • Adjusted EBITDA per share grew 0.5 38% in Q2 21, measured on a rolling 12 month basis 0.0 Mar Jun Sep Dec Ma
Slide 14: Financial leverage
Financial leverage Pro forma net debt/Adjusted EBITDA 2.6 2.7 • Pro forma calculation includes last 12 months of Adj EBITDA for acquired entities -0.5 • Updated financial target is to maintain Net debt < 3.5x adjusted EBITDA over time • Pro forma Net debt/Adj EBITDA of -8.8 2.7x after payment for In
Slide 15: Thank you!
Thank you! To get in touch, contact: Thomas Heath, Chief Strategy Officer & Head of Investor Relations Ola Elmeland, Investor Relations investors@sinch.com